$5,000,000 to Build or Fix Up an Apartment Building

Called Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects and referred to as Program #14.155 in the Catalog of Federal Domestic Assistance, this program provides money for existing multifamily housing projects, whether conventionally financed or subject to federally insured mortgages at the time of application for mortgage insurance. Only projects not requiring substantial rehabilitation are acceptable under this section. The estimated cost of required repairs may not exceed 15 percent of the estimated value after repairs or $6,500 per unit adjusted by a high cost factor, whichever is greater and may not involve the replacement of more than one major system. The program has statutory per unit mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to- value and debt service limitations. Prevailing wage requirements under the Davis-Bacon Act do not apply to this program.

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